BoE and PRA Publish PS5/19 on Approach for Withdrawal from EU
BoE and PRA published a policy statement (PS5/19) that contains final versions of policy materials on EU Exit Instruments, the related supervisory statements (SS1/19, SS2/19, and SS18/15), and a statement of policy (SoP) titled "Interpretation of EU Guidelines and Recommendations: BoE and PRA approach after the UK’s withdrawal from the EU"; these documents were published as near final on February 28, 2019. PS5/19 also includes supervisory statement on non-binding materials related to the financial market infrastructure supervision. Additionally, BoE has notified that the deadline for a firm to notify PRA that it wishes to enter the temporary permissions regime has passed. The period for notifications set out in the PRA Direction ended on April 11, 2019.
On April 11, 2019, the European Council decided, in agreement with UK, to further extend the period provided for in Article 50(3) of the Treaty on European Union until October 31, 2019. BoE and PRA have not changed the policy or significantly altered the text of the published materials since their publication as near-final. Section B of PS5/19 sets out the limited updates to these materials since they were published as near-final. BoE and PRA are not publishing final versions of their transitional directions and transitional guidance materials published as near-final in Section A of the February 2019 version of PS5/19. In light of the Brexit extension, BoE and PRA will consider whether to make any changes to these directions and guidance materials. BoE will publish further information on this in due course.
However, BoE and PRA have made minor changes to three EU Exit Instruments, SS18/15, and SoP, compared to the versions published as near-final. The changes are to clarify drafting and do not constitute policy changes. The minor changes that have been made to the final EU Exit instruments appended to PS5/19 can be described as follows:
- Clarification changes
- Consequential changes to reflect relevant underlying Statutory Instruments made or laid by HM Treasury or other government departments since publication of the February 2019 version of PS5/19
- Minor administrative and corrective changes to ensure accuracy of PRA Rulebook and the amended Binding Technical Standards (BTS)
All EU Exit Instruments appended to PS5/19 have been finalized and have the commencement date of exit day with one exception. The exception is that Annex BF of the PRA Rulebook: EU Exit Instrument 2019 (Appendix B.2) has a commencement date of July 01, 2019. PRA will provide further updates in relation to this Annex in due course.
Related Links
Keywords: Europe, EU, UK, Banking, Insurance, Brexit, EU Withdrawal, Regulatory and Supervisory Approach, PS 5/19, PRA, BoE
Previous Article
RBI Publishes Enabling Framework for Regulatory SandboxRelated Articles
BCBS Consults on Principles for Operational Risk and Resilience
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
FSI Note Discusses Challenges Associated with COVID Relief Measures
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
HKMA Announces Repayment Deferment Under Payment Holiday Scheme
HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.
ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal
The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.
MAS Announces Key Initiatives to Support Adoption of SORA
MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.
BoE Updates Template and Definitions for Form ER
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.
PRA to Extend Temporary High Balance Coverage Amid COVID Crisis
PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.
EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC
EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.
EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10
EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.
EC Sets Out Updated Technical Information for Solvency II Calculations
EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.
